Truist Charitable Fund names 17 new grant recipients
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Insights
The initiative announced by Truist Financial Corporation represents a significant investment in community development, which is poised to have a substantial socio-economic impact on the regions targeted. From an economic standpoint, the injection of $5 million into community efforts is likely to have a multiplier effect, stimulating local economies through job creation, affordable housing development and small business support. The focus on placing individuals into livable wage jobs and developing affordable housing units aligns with economic theories that emphasize the importance of human capital and stable living conditions in fostering economic growth.
Furthermore, the deployment of $65 million in loan capital is a strategic move that can enhance financial inclusion for small businesses and homeowners, potentially leading to increased economic activity and community revitalization. By addressing workforce development and essential community services, this initiative also indirectly supports the labor market by equipping individuals with necessary skills and resources, thereby contributing to a more productive workforce.
However, it is crucial to consider the long-term sustainability of such programs and the risk of dependency on external funding. The success of these initiatives should be measured not just by the immediate outcomes but also by their ability to become self-sustaining and to catalyze further private investment in these communities.
The Truist Community Catalyst Initiative could potentially influence the perception of Truist Financial Corporation among investors and customers. In today's market, corporate social responsibility (CSR) is increasingly important to stakeholders and initiatives like this can enhance a company's reputation and brand value. This perception can translate into customer loyalty and investor interest, potentially impacting the company's stock performance positively.
Moreover, by investing in community development, Truist is also investing in potential future markets. Affordable housing and workforce development create a foundation for economic stability, which can lead to new consumer bases for financial services. As these communities grow and prosper, there may be an increased demand for banking and loan products, offering Truist opportunities for market expansion.
It is important for investors to monitor the effectiveness of these community investments in terms of actual economic outcomes. If successful, these programs could serve as a model for corporate-led community development, potentially influencing the strategies of other financial institutions and the broader market.
The announcement by Truist Financial Corporation to allocate $5 million through its Charitable Fund to community development initiatives is a strategic investment that could have implications for its financial performance. This kind of social investment can be seen as a long-term strategy to mitigate risks associated with economic disparities and to foster a stable environment for business operations. The direct impact on the company's financials in the short term may be limited to the outflow of the charitable funds, but the long-term benefits could include an expanded customer base, reduced credit risk in economically stronger communities and potential tax benefits associated with charitable giving.
From a financial analysis perspective, the key will be to assess the return on investment (ROI) of these community initiatives in terms of social impact and financial benefits to the company. Investors will be interested in how these efforts align with Truist's overall business strategy and how they might contribute to the company's bottom line through indirect channels such as community goodwill, brand strengthening and customer retention.
It is also noteworthy that Truist's initiative is leveraging a donor-advised fund, which is a philanthropic vehicle that offers flexibility and tax advantages. The choice of this funding mechanism may reflect a strategic approach to maximize the impact and efficiency of their charitable contributions.
Funding will impact over 10,000 individuals across 13 states
The funding, provided by the Truist Charitable Fund—a donor-advised fund administered by The Winston-Salem Foundation, totals
"The goal of Truist's Community Catalyst Initiative is to understand a state's top critical needs and partner with nonprofits to address the issues by driving meaningful collaboration and change for the benefit of the community," said Truist Chief CRA/Community Development Officer Anthony Weekly. "These organizations focus on creating innovative, scalable and sustainable ideas, and we look forward to positively impacting the lives of more than 10,000 individuals."
The 2023-25 Truist Community Catalyst Initiative focuses on issues within four key focus areas: affordable housing, small business access to capital, workforce development and essential community services. As each program expands, grant recipients will have the opportunity to reapply for additional funding annually through 2025.
"Collaborating with the 17 lead organizations and their more than 100 partners will expand existing programs or help introduce new services to multiple communities across each state and bring to life our purpose of inspiring and building better lives and communities," added Truist CRA Managing Director of Strategic Programs and Initiatives Heidi Schoonover.
Funding will be provided to the following lead organizations:
Affordable Housing
- Florida Community Loan Fund:
Florida's first statewide community development financial institution will use grant funding to support new and existing loan programs that offer more flexible financing options for affordable housing and to increase the nonprofit's capacity. - Center for Community Self-Help: Self-Help is a
North Carolina -based CDFI that provides responsible financial services, lending to small businesses and nonprofits, developing real estate and promoting fair financial practices. Grant funding will expand the nonprofit's Naturally Occurring Affordable Housing Preservation Project and Housing Loan Fund to finance and secure affordable housing units. - Virginia Supportive Housing: VSH's mission is to end homelessness by providing permanent housing and supportive services to the most vulnerable individuals in our society. Grant funding will help VSH expand its geographic footprint to bring affordable housing and permanent supportive housing developments to more rural and suburban communities in
Virginia . - Enterprise Community Partners: A national housing nonprofit, Enterprise Community Partners exists to make a good home possible for the millions of families without one. Grant funds will support expansion of Enterprise's Faith-Based Development Initiative into
Montgomery andBaltimore counties. The program helps houses of worship transform underutilized land into affordable housing. - Regional Housing Legal Services: RHLS helps create thriving communities offering healthy and affordable housing for lower-income Pennsylvanians through legal services and policy solutions. Grant funds will expand legal and technical assistance as well as training and education to owners and managers of affordable housing developments to preserve and improve the availability of affordable housing across
Pennsylvania . - LISC: As a CDFI, LISC provides grant dollars, loans, tax credit equity, one-on-one technical assistance, access to consultants and training to build the capacity of partner organizations. Grant funds will create a standardized training program for emerging developers in
Houston andSan Antonio , with a focus toward those who have faced tremendous barriers to success. - CommunityWorks in
West Virginia : A CDFI focused on affordable housing, CommunityWorks inWest Virginia will use the grant funds to expand lending capacity, providing more opportunities for low-income home purchasers and homeowners in need of repair financing. CommunityWorks inWest Virginia also will create new loan products to incentivize more organizations to develop affordable rental housing and for consumers to repair their credit.
Small Business Access to Capital
- Ascendus Inc.: This nationwide CDFI empowers LMI small business owners through access to capital and financial education. Grant funds will support the nonprofit's launch of a revolving line of credit product for LMI entrepreneurs across the state of
Florida . - Scale Link: A nonprofit that supports the growth and development of CDFI small business lenders by creating secondary markets for their loans. Grant funds will support Scale Link expansion to more CDFIs across
North Carolina . - Pathway Lending: Based in
Tennessee , this CDFI has lent over half a billion dollars across the Southeast and is committed to supporting the development, growth and preservation of underserved small businesses, affordable housing and sustainable communities, through its lending products and coaching programs. Grant funds will enhance and expand Pathway's coaching and technical assistance programs through its Tech-Enabled Coaching to Capital Initiative, amplifying its impact on small businesses.
Workforce Development
- Tallatoona Community Action Partnership Inc.: With a mission to assist low-income individuals and families to acquire useful skills and knowledge, gain new opportunities and achieve self-sufficiency, Tallatoona CAP is bringing together multiple organizations to implement its Pathways to Empowerment Workforce Development Initiative. Grant funds will help provide the training and support individuals need to gain jobs as certified nursing assistants, CNC machinists or certified industrial maintenance professionals.
- JUMPSTART
South Carolina : JUMPSTART SC assists current and former prisoners across the state ofSouth Carolina by creating pathways to a successful re-entry, including transitional housing, employment, education, job skills training, health care and a healthy support network. Grant funds will create a new Opportunity Center to offer workforce development, education, housing support and financial literacy training. - Paths for Success: A nonprofit organization designed to assist
Alabama citizens in obtaining skills, credentials, and/or certifications that lead to gainful employment. Grant funds will power the nonprofit's new TruEd Initiative, which will allow adults to complete the Alabama Career Essentials training, obtain GEDs or complete high school and get professional certifications to obtain a livable wage job while providing key workforce barrier removal resources, such as child care and transportation.
Essential Community Services
- Inspiredu: A nonprofit helping underserved youth and families develop the skills needed for education and career success by providing devices, training and access to technology while engaging in activities with families, communities and schools. Grant funds will support the expansion of the program to more southeast
Georgia communities and markets. - HumanKind: A
Virginia nonprofit that serves as a statewide network of sponsored homes for adults with intellectual disabilities, foster care services, family support services, theCentral Virginia region's first Early Head Start centers, and Economic Resource Centers. Grant funds will expand the nonprofit's Ways to Work program, which provides vehicle loans to individuals with credit profiles that prevent them from accessing mainstream financing along with targeted financial education and credit repair assistance. - Southeast Kentucky Economic Development Corp.: SKED's mission is to improve the quality of life and vitality by promoting sustainable economic development and employment opportunities with creativity, professionalism and integrity. Grant funds will expand essential community services by increasing access to child care services for LMI families, with a focus on women-owned child care businesses throughout the state in partnership with the Small Business Development Center of
Kentucky . - Capital Good Fund: A CDFI with a mission to create pathways out of poverty and advance a green economy through inclusive financial services. Grant funds will support the expansion and scaling of their low-cost, credit-building Impact and Impact Plus Loan programs into the state of
New Jersey , which will provide small loans to address critical housing-related needs.
Additional details on each commitment will be shared by the individual organizations in the future. For more information about how Truist invests in communities, please visit www.truist.com/purpose/community.
About The Truist Charitable Fund
The Truist Charitable Fund (TCF) is committed to Truist Financial Corporation's purpose to inspire and build better lives. TCF was established as a donor-advised fund and is administered by The Winston-Salem Foundation. TCF invests in local community organizations, focusing on grants that support initiatives and programs in the areas of educational equity, leadership development, career pathways, small business and community services. To learn more about Truist's purpose, visit https://www.truist.com/who-we-are/about-truist.
About Truist
Truist Financial Corporation (NYSE: TFC) is a purpose-driven financial services company committed to inspiring and building better lives and communities. Truist has leading market share in many high-growth markets in the country and offers a wide range of products and services through our retail and small business banking, commercial banking, corporate and investment banking, insurance, wealth management, and specialized lending businesses. Headquartered in
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SOURCE Truist Financial Corporation
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